The Tradr 2X Short NBIS Daily ETF (NBIZ) emerged as Thursday's top-performing fund, surging approximately 39% as Nebius Group (NBIS) shares plunged nearly 20%. The Nebius sell-off followed disappointing forward guidance and fresh turbulence across U.S. AI infrastructure stocks after NVIDIA Corp. (NVDA) CEO Jensen Huang's sudden resignation.
Nebius reported third-quarter revenue of $980.8 million, up 571% year over year and above analyst estimates of approximately $907.5 million. However, the company lowered its 2026 revenue guidance to $3 billion-$3.2 billion, trimming the upper end from its previous $3.4 billion forecast.
The revised outlook followed delays in bringing some third-party data center capacity online, now expected in the first half of 2027. Nebius also raised its 2026 capital expenditure forecast to approximately $27 billion, from $20 billion-$25 billion previously, with spending projected to reach $40 billion-$45 billion in 2027.
Despite the near-term setbacks, Nebius expects 2027 revenue of $12 billion-$13 billion and targets pre-tax break-even by year-end.
Jensen Huang's Exit Adds to Neocloud Rout
The earnings disappointment came amid heightened uncertainty surrounding Nvidia, whose CEO Jensen Huang resigned on Thursday, triggering another wave of selling across AI-linked stocks.
The leadership shock weighed particularly heavily on neocloud companies with close Nvidia ties. CoreWeave (CRWV) fell sharply, while Nebius lost nearly 20%. IREN Ltd. (IREN) also faced pressure.
Nvidia's strategic and financial relationship with the neocloud ecosystem has made its leadership transition a source of concern for investors assessing the sustainability of AI infrastructure investments.
NBIZ Capitalizes on Double-Edged Sell-off
NBIZ seeks to deliver twice the inverse of NBIS's daily performance, making it a leveraged vehicle for traders betting against the stock.
With Nebius falling nearly 20% on Thursday, the ETF's approximately 39% advance reflected its daily leveraged inverse exposure. The difference from a straightforward 40% gain can arise from actual daily performance and fund expenses.
However, NBIZ targets twice the inverse of Nebius's daily return, not its cumulative long-term performance. Daily rebalancing and compounding can cause returns to diverge significantly over multiple sessions.
Despite Thursday's setback, Nebius expects 2027 revenue of $12 billion-$13 billion and anticipates reaching pre-tax break-even by year-end. Management also indicated that customers are already seeking computing capacity for 2028.
For ETF investors, NBIZ's rally highlights how leveraged single-stock funds can capitalize on earnings-driven volatility, even as the underlying company's longer-term AI growth opportunity remains intact.
